Article Highlights

  • New Zealand quarterly headline and core retail sales up by 1.2%
  • Japanese core machinery orders show weaker than expected 8.8% gain y/y
  • Australia’s MI inflation expectations down from 3.8% to 3.1%
  • Nikkei marks 0.66% gain for the day
  • U.K. RICS house price balance at 49% vs. 51% estimate
  • Euro zone GDP figures to disappoint?
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A bit of good news for the Kiwi, finally! NZD/USD popped slightly higher when New Zealand reported a 1.2% quarterly gain in headline and core retail sales. The pair rallied to a high of .8489 before sinking back to the .8470 levels. Over in Australia, MI inflation expectations slipped from 3.8% to 3.1%, yet the Aussie managed to stay afloat after the release.

Japan continued its streak of dismal data, as the country printed a weaker than expected 8.8% gain in core machinery orders. This was much lower than the estimated 15.5% increase and was not enough to show a strong rebound from the previous month’s 19.8% decline. Despite that, the Nikkei managed to post a 0.66% gain for the day as yen pairs edged higher.

USD/JPY is once again testing the 102.50 minor psychological resistance while EUR/JPY is stalling at the 137.00 handle. GBP/JPY is struggling to hold on to the 171.00 handle, after the BOE Inflation Report yesterday turned out more dovish than expected and the RICS house price balance showed a 49% reading versus the estimated 51% figure.

The euro could steal the spotlight in the next few hours, as GDP figures from its top economies are up for release. Germany might show a 0.1% quarterly contraction while France is slated to print a 0.1% uptick, with weaker than expected figures likely to keep euro gains at bay. The region’s overall Q2 GDP reading and final CPI figure for July are also up for release.

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Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

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